Start-Up Visa Program for Business-Minded International Students

February 27, 2018 – Chinese international students in British Columbia are being guided towards entrepreneur immigration and the federal Start-Up Visa program as a way to extend their time in Canada after graduation.

A recent event at the University of British Columbia aimed at linking students with entrepreneurs generated significant interest among young, educated, Chinese speakers looking to secure their futures in Canada.

While some were unaware of the onerous commitments required when starting a business, others could see the potential benefits of pursuing permanents residency through the Start-Up Visa program.

Almost every other federal and provincial-level entrepreneur program requires a minimum of one or two years of previous experience either owning a business or in top-level management. This includes the passive Quebec Immigrant Investor Program (QIIP).

Under the Start-Up Visa, the onus is placed on securing support from a government-designated entity (angel investor group, venture capital fund or business incubator). The support can be financial or in the form of accepting the candidate into a business incubator program.

Provided other requirements are met, the candidate then receives Canadian permanent residence in return.

The program aims to recruit innovative entrepreneurs to Canada and link them with the Canadian private sector businesses, (angel investor groups, venture capital funds or business incubators) and facilitate the establishment of their start-up business in Canada.

Initially launched as a pilot in 2013, the Start-Up Visa program is due to make the transition to permanent on March 31, 2018. As of August 2017, 68 new companies had been launched under the program, attracting investment of $3.7 million.

Critics would point out this represents limited success when compared to Quebec, which accepts 1,900 immigrant investors annually. This generates nearly $275 million ($146,000 per investor) which is given to qualified Quebec companies.

Applicants to Canada’s Start-Up Visa program must meet four basic eligibility requirements:

Obtain a commitment from a designated entity in the form of a Commitment Certificate or Letter of Support;

Have sufficient unencumbered, available and transferable settlement funds;

Have completed at least one year of post-secondary education;

Demonstrate sufficient proficiency in English or French through standardized testing (Canadian Language Benchmark level 5);

The required commitment from a designated entity must meet the following criteria:

A designated angel investor group must confirm that it is investing at least $75,000 into the qualifying business, or two or more commitments from designated angel investor groups totaling $75,000; OR

A designated venture capital fund must confirm that it is investing at least $200,000 into the qualifying business or two or more commitments from designated venture capital funds totaling $200,000; OR

A designated business incubator must confirm that it is accepting the applicant into its business incubator Program.

In order to qualify, the intended business must be incorporated and carrying on business in Canada at the time the commitment is made and:

The applicant owns a least 10 per cent of the voting rights in the corporation; AND

No other person holds 50 per cent or more of the total amount of voting rights in the corporation.

The federal government sees the program as another way to promote Canada’s pro-immigration stance to the business community. It sits alongside the flagship Global Talent Stream, which offers two-week application processing for selected in-demand jobs for registered companies.

The GTS has been hailed as a big success since it was introduced by the Liberal government in 2017.